EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
INTRODUCTION OF THE PROJECT

I did my project in Lumbini Beverages Pvt .Ltd. Patna. In my project I learned how the distribution
activities are running in the market & how it affect sales of the product.

The study is concerned with the distribution of all the products of Pepsi to the retailers and asking
them the problem they are facing which has given the true picture of current position of PEPSI.

PROJECT TITLE

“STUDY OF DISTRIBUTION NETWORK”

REASON OF SELECTING THIS PROJECT & COMPANY

The reason for selecting this project is to gain more knowledge in the field of Marketing.

LOCATION
LUMBINI BEVERAGES PRIVATE LIMITED,HAJIPUR, PATNA

DURATION OF THE PROJECT

The duration of the project was of 8 week (i.e. 2 months)

INTRODUCTION OF THE STUDY

 The World economy has undergone a radial transformation in the last two
decades. Geographical and cultural distance have shrunk significantly with the improvement in
the production, transportation and communication. These advances have permitted companies to
widen substantially both their market and their supplier sources. And thus the role of marketing
becomes wide.

“Marketing starts with the Human needs & wants”

Apart from basic necessities of air, water,shelter,clothing & sex, every person has strong desire
for recreation & entertainment. They have strong preference for particular brand of basic goods
& services. Marketing serves as the link between the society’s needs and its pattern of industrial
response.

Beverage industry is one of the fast growing industries in India. We can divide beverages into
two section i.e. Alcoholic & non-alcoholic. The non- alcoholic drinks are soft drink that can be
further classified in cola,lemon,orange and mango segment.

In present scenario, market has become a perfect competition market. Mere survival has become
the primary objective of any business organization. Marketing activities are designed to plan,
price, promote, and distribute need satisfying products and services to the existing and potential
customers. In other words, we can say that marketing is all about delivering goods and services
to the society for consumption and satisfaction but only at profit.

As far as the soft drink market is concerned, it is facing the cut throat competition because of the
availability of a large number of indirect as well as direct competitors. Single company offers the
soft drinks to the market in different taste and flavors. In this industry entire range of flavors are
produced by other competitors also. More often than not it becomes impossible to differentiate
between the same flavors of two different brands, when served in a plane container. Besides,
both corresponding brands have the price range also. All these factors together make the
situation complicated.
 HOW I CARRY OUT MY PROJECT ?

In my project I learned how the distribution channel are run in the market and how it
affect sale. The study is concerned with physical distribution of various product of Pepsi brand
and asking retailer the problem which they are facing that shows the true picture of current
position of Pepsi.

There are about 4000 retailer of soft drinks in Patna, so a sample size of 600 was sufficient for
the study. I was given certain area to visit where I interviewed the retailers to fill the
questionnaire. Primary data was collected through survey method by the help of structured
interview and filling schedule design. Whereas secondary data was collected from various
website, business magazine, newspaper etc

I visited various outlets and checked which type of displays are present there and according to
this place whether this display is suitable or not.

During my Project I found that

• COCA COLA distribution is more better than PEPSI
• Retailers are not satisfied with the services of distributor.
• In many areas Pepsi is direct distributing its products through various Dipo.
• Demand of Pepsi is more than COCA COLA.
• Retailers are satisfied with PEPSI racks and various scheme.

IMPORTANCE OF STUDY
The training in an organization is very much important for a student who is undergoing with such
course. This course is not the answer to all the problems, which arises in the practical field .
There is no certain formula for any particular problems, but the aim of this study is to develop
the ability of decision making. A right decision at right time itself helps an organization to run
smoothly.

This training in an organization gives an idea how decisions are taken tact fully when any
problem comes to an executive. So the way of problem solving, right decision making and
knowledge of different type of marketing activities gives much importance to the study. Though
only in two month it was not possible to understand it so deeply but an overall idea could
develop.
 THEORETICAL FRAMEWORK

This chapter mainly focuses on the theoretical aspect of marketing which includes market
research, consumer behavior and channel of distribution in relation to PEPSI.
This chapter enables us to know the current position of Pepsi and gives clear cut information
about how this project has been gone through for better understanding of the distribution network
of Pepsi.

Introduction

Marketing activities begins and ends with the need of ultimate customers. Here the aim is not to
find the right customer for your product but to make the right product for your customers.
Marketing tools do not achieve marketing objectives by themselves. There is an intermediate
step between the deployment of marketing tools and achievement of marketing objectives. A
Marketing network consists of the company and its supporting stakeholders(customers, suppliers,
distributors, retailers, ad-agencies and others) the operating principle is simple; build an effective
network of relationships with key stakeholders and profit will follow.

A set of marketing tools, the firm uses to pursue its marketing objectives are called marketing
mix. These tools can be classified into four groups which are called the 4p’s of marketing.

PRODUCT PRICE PLACE PROMOTION

Soft drink is a FMCG product which has a wide and scattered market. Thus in order to such
companies needs to breakdown their marketing activities into sub-parts to effectively meet
customer needs.
The entire marketing in this case is divided into three parts;

Route marketing
Home marketing
At work marketing

ROUTE MARKETING
Outlet coming under this market cater to the needs of those customers who are engaged in
shopping, eating out in restaurants, going to and from work, in amusement centre etc. in simpler
words this marketing is what we called bazaar.

HOME MARKETING

Outlets coming under this market cater to the needs of those customers who buy softdrink
predominantly for home consumption either by glass bottles, pet bottles.
The shops targeted under this category are those which are located inside residential complex or
are located nearer to the residential areas. These shops predominantly sale pet bottles.

AT WORK MARKETING

Outlets coming under this market cater to the needs of those customers who are working in
offices, factories, etc. i.e. the outlets targeted are the canteens mainly.

DISTRIBUTION CHANNEL
 PRODUCTION DISTRIBUTION CONSUMPTION

Physical distribution is a process of reaching a product to consumer. It consists of all the

activities in the physical transfer of goods from manufacturer to ultimate customer. Distribution
are one of the 4’Ps of marketing mix.

Theoretical Aspect;

Main problem of a manufacturer can broadly be divided into two parts. Production and
distribution. After production the next problem faced by the producer is that to distribute those
goods which are made to satisfy the consumer’s needs. So it must reach to the consumer for
whom it is made.

Thus a way through which goods flows from the producer to consumer is called “channel of
distribution”.

FACTOR AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL

There are number of channel available for a company to choose, but the company choose only
those distribution channel which is less costly and more profitable also which suits the marketing
strategy of the company. The channel chosen achieve ideal market exposure and should meet the
target consumers need and preferences. In choosing an ideal channel, the producer always has to
struggle between what is ideal & what is available need not necessarily be ideal because here are
number of factor which limits the choice, generally the lowest cost channel may be considered to
be the best it is not always so. The main consideration is selecting the channel must be
satisfaction of customers and therefore, sometimes relatively high cost channel may proof
profitable.

Various factors affect the choice of channel of distribution may be classified as follows;-

Factor relating to product characteristics-

1. Purchase frequency
2. Weight & technology of the product
3. Selling price of the product
4. Standardized product

Market factor or consumer factor-

1. Consumer of industrial goods
2. Number of purchase
3. Geographical distribution of customers
4. Size of orders

Companies or enterprise factor-

1. Financial resources
2. Size of the company
3. Product mix
4. Attitude of company executive
5. Marketing policies

Middle consideration-
1. Services provided by the middleman
2. Middleman attitude
3. Availability of middleman
4. Sale volume potential
5. Cost of channel usage

Environmental factor-
1. Economical condition
2. Legal restriction
3. Social & ethical consideration
Thus the above factors influence the channel decision. The producer must consider these factor
before engaging any channel of distribution. It is therefore right to say that the producer is not
always free to enjoy complete freedom in selection of channel of distribution.

COMPANY PROFILE
 HISTORY OF PEPSI
HISTORY OF SOFT DRINK IN INDIA
HISTORY OF SOFT DRINK IN BIHAR
ORGANIZATIONAL PROFILE OF LUMBINI BEVERAGE
ORGANIZATIONAL STRUCTURE
PRODUCTION PROCESS
DISTRIBUTION NETWORK
PROCESS OF DISTRIBUTION
SWOT ANALYSIS

HISTORY OF PEPSI

CALEB BRADHAM a new Bern, N.C. druggist, created Pepsi-Cola in late

1890s.Pepsico was founded in 1965 through the merger of Pepsi-Cola and Frito-
Lays. Its CEO is STEVE REINEMUND and in India its CEO is INDRA K.
NOOYI.
The company consists of Frito-lay North America. PepsiCo Beverages North America, and
PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly
200 countries and territories.

Many of PepsiCo’s brand names are more than 100-years old, but the corporation is relatively
young.

Pepsi Cola began its product outside the UNITED-STATES and CANADA in the mid1930s,
opening in the UNITED KINGDOM in 1936. Operation grew rapidly beginning in the 1950s.
Today PepsiCo beverages are available in more than 170 countries and territories. Brands
include Aquafina, Gatorade and Tropicana.

In addition to brand marketed in UNITED STATES, PepsiCo international brands include

Mirinda, 7-UP and many local brands.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-
you items to product choices that contribute to healthier lifestyles.

PEPSICO’S MISSION is “To be the world’s premier consumer product company

focused on convenient foods and beverages. Pepsi seek to produce healthy financial rewards to
investors as it provides opportunities for growth and enrichment to its employees, business
partners and the communities in which it operate. And in everything it do, it strive for honesty,
fairness and integrity.”

PepsiCo is a world leader in convenient foods and beverages, with 2008 revenues of more than
$35 billion and 157,000 employees.

Pepsi plans are on to add 100,000 outlets every year to its current network of around 600,000
across the country.

Shareholders
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the
United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo
has consistently paid cash dividends since the corporation was founded.
Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the
quality of life in our communities. This philosophy is expressed in our sustainability vision
which states: “PepsiCo’s responsibility is to continually improve all aspects of the world in
which we operate – environment, social, economic -- creating a better tomorrow than today.”
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo a
truly sustainable company.
PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from
New York City. The seven-building headquarters complex was designed by Edward Durrell
Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre
complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture
collection in a garden setting.
The collection of works is focused on major twentieth century art, and features works by masters
such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti,
Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world
famous garden planner, Russell Page, and have been extended by François Goffinet. The grounds
are open to the public, and a visitor's booth is in operation during the spring and summer.

SUSTAINABLE ADVANTAGE
Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global
marketplace.

1) Big muscular brands.

2) Proven ability to innovate and create differentiate products.
3) Powerful go to market system.

GUIDING PRINCIPAL OF PEPSICO;

This is how we carryout our commitment. We must always strive to care for customers,
Consumers and the world we live in. We are driven by an intense, competitive spirit in the
marketplace, but we direct spirit towards solutions that achieve a win for each of our constituents
as well as a win for us. Our success depends on a through understanding of our customers,
consumers, and communities. Essentially this is a spirit of growing rather than taking
.
Sell only products we can be proud of . The test of our standards is that we must be able to
personally endorse our products without reservation and consume them ourselves, from the
purchasing of ingredients to the point where our products reach the consumer’s hands.

Speak with truth and candor. We speak up, telling the whole pictures, not just what is convenient
to achieving individual goals. In addition to being clear, honest and accurate, we take
responsibility to ensure our communications are understood.
Balance short term and long term. We make decisions that hold both short-term risks and
benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable
growth.

Win with diversity and inclusion. We leverage a work environment that embraces people with
diverse traits and different ways of thinking. This leads to innovation, the ability to identify new
market opportunities, all of which help develop new products and drives our ability to sustain our
commitments to growth through empowered people.

Respect others and succeed together. The company is built on individual excellence and personal
accountability, but no one can achieve our goals by acting alone. We need great people who also
have the capability to work together, whether in structured teams or informal collaboration.
Mutual success is absolutely dependent on treating everyone who touches the business with
respect, inside and outside the company. A spirit of fun, our respect others and the value we put
on teamwork make us a company people enjoy being a part of, and this enables us to delivered
world-class performance.

HISTORY OF SOFT DRINK IN INDIA

With the urbanization and development in the economy of India, the soft drink industries
are also flourishing with an increasing pace. The economic policy has been made more flexible,
the trade policy, Exim policy and industrial policy has been liberalized.

It is potentially one of the largest consumer market in the world with a population of
more than one billion. Soft drink is a typical consumer products purchased by an individual to
quench thirst and refreshment. In older days people used to quench their thirst by taking “Water”
and “Ganna juice” which is still prevailing in the market. But as the people become more and
more sophisticated means of satisfying thirst, which ultimately gave way to the production of
modern soft drink.

There are mainly two silent feature of the consumers markets in India. Generally the
consumers have low purchasing power and the fact that the urban consumer represents a meager
percentage of the total population.
 Introduction of soft drink in the name of Coca-cola was first created in 1886 in U.S.A.
Dr.John S.Peferton perfected the formula for Coca-cola. The Parle came up by introducing
‘Gold Spot’ in orange flavor. It was really a challenging task for Parle to position its product
i.e. Gold Spot in the market against the Coca-cola because people were habituated of using
foreign brands. So, first of all it was launched in Bombay and free sampling was done in hotels,
restaurants, offices and clubs to make the people aware about the taste and quality because it was
quite different from Coca-cola in these two attributes.

After a tedious effort of about twenty yrs. It succeed in establishing its separate identity.
It increased its production unit up to 29 which was more than Coca-cola that had only two
production unit at that time.

Thus Coca-cola was the first foreign brand introduced in India during 1965 and the first
Indian branded soft drink was Gold Spot, which was launched in the later part of 1940’s

During the reign of Janta party in 1978, the Indian Govt. cancelled collaboration with
U.S.A. Coca-cola company. So the Coca-cola decided to wind up its operation rather than
bowing to Indian government. This very factor accelerated the growth of several Indian
companies who had aggressively competing with each other to capture a major share of the
Indian soft drinks market. New soft drinks entered into the market among which
FROOTI,JUMPIN(Godrej) and Treetop(Lipton) entered in tetra pack package and they started
grabbing the market share in absence of the Cola giant.

In 1991, about thirty yrs after the exist of Coca-cola from Indian scene an
MNC(multinational company), globally known as P.C.I(Pepsi Cola International)entered the
Indian market with PFL(Pepsi Foods Ltd.) its president. Christopher found a larger scope for this
soft drink in India.

Both PFL and Parle were the two main battlers in the soft drink arena. There was a cut
throat competition between them. Now (in1993)Coca-cola has re-entered into the Indian market
and has acquired five brands of Parle i.e. Thumsup, Limca, Citra, Mazza and Gold spot. Thus
Coca-cola India has become the competitors of PFL and they are fighting each other to gain a
clear edge over the other.

The Indian Soft drink market basically offers three flavors i.e. Cola, Orange and
Lemon. The Indian soft drink industry is estimated at whooping Rs..2000 crore and growing at
an encouraging pace of 16 % per annum.

PEPSI-THE INDIAN EXPERIENCE

Pepsi entered the Indian soft drink market in 1988 and began its production in may 1990 and
soon it was giving the local contenders the run for their memory in the soft drinks market. It
came out with dazzling marketing innovation that rocket the Cola market live selling the product
through functional Pepsi outlets. Its advertisement agency was “Hindustan Thomson
Association(HTA).”

Pepsi good is one of the largest and best foreign investment in India. Pepsi has distributed
exclusive franchises in India to bottle its products. At present it has 40 bottling lines in the
country. Pepsi owns 16 units and the rest are owned by franchises. The two silent features of the
consumers market in India, are generally prevailing, low purchasing capacity of consumers and
the fact that urban consumers responding about 30% of the total population account for nearly
70% of the consumers expenditure. The government of India has considered the soft drinks
industry as non essential. As a result of the excise duty levied by the government on the bottled-
soft drink is very high.

The soft drink industries in India has an annual sales exceeding more than Rs. 300 crores and
most of the bottling companies have been coursing well. The exit of Coca cola from India has
accelerated the growth of several Indian companies have grown and expanded their activities by
placing more and more of their soft drinks in the market and by moving refrigeration by
supplying ICE-BOX and visi-coolers and one fridge to their retailers.

HISTORY OF SOFT DRINK IN BIHAR

The soft drink market in India is quite wide. The production of soft drink was started on 27 th
march,1967 with the installation of a Coca-cola bottling plant of Jamshedpur under the
auspicious guidance of late industrialist Shree Dharam Chand Kamani named as Steel City
Beverages Ltd. The company controlled the lion’s share in the soft drink market for nearly 10
yrs. Parle also entered this field in bihar with installation of a bottling unit in collation with Mr.
Rajendra Poddar in the name of Orient Beverages Ltd. in Patna industrial state in the year
1973. It (Parle) has also a bottling unit at Jamshedpur named as Jamshedpur Beverages Ltd. In
1977 with the advent of Janta party govt. it created trouble for Coca-cola which led to the
withdrawal of its operation from India.

After the withdrawal of Coca-cola from India, Parle monopolized the soft drink market in
Bihar and took the lion’s share of the projects from the industry that even after Mc.dowell’s pure
drinks and local drinks entered into the market they could not compete with Parle.
 Once again with the liberalization of economy in 1991 Pepsi food Ltd. Entered in the
Indian market. It started bottling its products in Bihar by Steel City Beverage’s company on 24th
march, 1991 owned by Kamanis in collaboration with the Birla group which was once the
bottling plant of Coca-cola. Though Parle range of product stills captures a large share of Bihar’s
soft drink market yet Pepsi range of product is giving a tough competition in all flavors i.e. Cola,
Orange and Lemon.

In 1997, another bottling plant was installed at Hazipur industrial Area by PFL named
as Lumbini Beverages Pvt. Ltd. to meet the requirement of Pepsi range of products not fulfilled
by Steel City Beverage Ltd. due to increased demand of these brands.

At present in Bihar there are four bottling plants, two of them i.e. Jamshedpur Beverages
Ltd. and Steel City Beverages Ltd. are located at Jamshedpur, one for Parle and another for Pepsi
range of products. In the other two, the Orient Beverages Ltd. for Parle is at Patna and Lumbini
Beverages Pvt. Ltd. for Pepsi range of products is located at Hazipur industrial area-Patna
ORGANISATIONAL PROFILE OF LUMBINI BEVERAGES PVT. LTD.

In the year1995, Lumbini Beverages Pvt. Ltd. was formed into a business company with legal
status. The company is situated at industrial area Hazipur, district-Vaishali in the state of Bihar; a
state notified category ‘A’ backward area at a distance of about 25 kilometers from Patna, the
capital city of Bihar. The steel city beverages Ltd. Situated in Jamshedpur steel city comes next
to Pepsi in bottling process. In the year 1995, as park franchisee, Lumbini Beverages Pvt. Ltd.
With reference to which the study is being conducted was started. It is a public Ltd. Company
with registered office situated at p-214 scheme VIM, Kolkata-700054.

In 1998, the company started its operation by producing only 300 ml. bottle and the other sizes
products are also being produced afterwards.

The market of north and central part of Bihar is covered by this company. The products
distribution is being carried out through a network of 42 distributors under the guidance of Pepsi
foods Ltd.

The Lumbini beverage Ltd. Is situated at an area of 10 acres. Limited beverages capacity of
production is 1200 bottles per minute and annual capacity of 98 million bottles (4 million crates.)
The present capacity is 1000-1200 bottles per minute.

Lumbini owns its 500 ml, 600ml, 1.5lt and 2lt big bottling plant. It produces 1200 bottles per
hour.

At present the company produces PEPSI, 7-UP, MOUNTAIN DEW, MIRINDA, SLICE,
LEHAR SODA and AQUAFINA MINERAL WATER. Out of the total production , the share of
PEPSI is about 45% and while that of MIRINDA is about 20%, MOUNTAIN DEW is about
20% and the rest (7-UP, AQUAFINA AND SLICE etc.) accounts for about 15%.

Since Lumbini beverages Pvt. Ltd. Is a franchisee of Pepsi Foods Ltd. The technical know how
required the chief ingredients for manufacturing the Beverages namely essence will be supplied
by PepsiCo. Again since the Lumbini Beverages Pvt. Ltd. Is situated in backward area the
Government also provides some incentives available to the units which are as under;
a) Exemption of sales tax on purchase of raw materials within the state.
b) Exemption of sales tax on sales of finished goods within the state.
 c) Many other incentives as applicable to such units feeling under the area declared as most
backward area in the state.

The company is headed by Director (Ravi khilani) who is direct Accountable to Chairman cum
Managing Director (Charan khilani) besides this there is a post of Chief Executive Officer
(G.P.Singh) who reports to the Director\Managing Director. There are besides the office and
Department in units i.e. sales and marketing, Production Department, Account\Finance
Department, Administration and Purchase Department and Shipping Department.

All the Executives are reported by the Salesman then they report to the Assistant Manager who
finally reports to the Manager. If required, the manager can also contact directly to these
executives. Similar is the case with other Department also; these managers in turn reports to
Chief Executive Officer, who reports to Director then to Managing Director. The higher Official
may also contact directly to lower level official for any relevant information if needed.

The Board of directors of the Company comprising of Mr. Charan Kumar Khilani, Mr. Sanjay
Kumar Khilani, Mr. Manoj Kumar Khilani, Mr. Ravi Khilani and Mr. S.M.Surana takes overall
decision related to any problem. Sometimes any major decisions are also being taken up in
consultation of different heads by board of directors.

The work force of the company is around 250 among which 70% are permanent which includes
managers and higher officers also and the rest are supplied by the local contractors. This work
force is headed by Mr. N.K.Prasad(manager-HRD)

The Advertisement for different products is being carried out by the PepsiCo as well as Lumbini
Beverages Ltd. The all India level Advertisement is being handled by PepsiCo and the local
advertisement is being done through different ad agency namely-Kalptaru, Happy adverts,
cosmeric adverts etc.

The total turnover of Lumbini Beverages Pvt. Ltd. Is Rs 45 crores.

Some sales promotion schemes are also there, like 1 bottle free on purchase of each carat, key-
rings, T-shirts, Openers, watches & ISI-Cooler etc.

The major equipments of Lumbini beverages Ltd. Consists of filler, Mojonnier, Bottle washer,
uncase, Caser, Conveying system, refrigeration system, Water treatment plant, Plastic bottles
production and other auxiliaries which are imported from USA. On the other hand, the auxiliary
equipments including utility items are being taken from local Indian markets. The local
contractors under the supervision of foreign technician led to the set-up of PepsiCo. The
maintenance is being done by the company itself through local contractors.
 ORGANISATIONAL STRUCTURE

BOARD OF
DIRECTOR

MANAGING

DIRECTOR

C.E.O

H.R. FINANC
MANAGE E
R MANAGE
H.R. ACCOUNT
ASSISTA OFFICER
NT

ACCOUNT
EXECUTIVE
 HOS PLANT
PRODUCTION PROCESS MANAGER

WATER TREATMENT PLANT SHIPPING

TDM MDM OFFICER
Water in the Lumbini Beverages is coming from underground. Before ensuring production, this
raw water is being treated in the water treatment plant. The process involved is known as
coagulation process. Main chemicalsBDM used are ferrous sulphateMDC(Feso4), calcium Hydroxide
(CaOH), & Chlorine (CL).
Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All
MEE
ADCthe turmidity. Then it sent
impurities get settled at base and remove to the carbon tank where all
the micro-organisms and chlorine’s are removed. The water so obtained is completely free from
any kind of impurities and can be used for further processing. The maximum alkalinity
C.E. MERCHANDIS
maintained until as much as 50 ppm.
E

BOTTLE WASHING PLANT PSR

Used bottles returning from the market are stealthy. It is completely an auto process which takes
place within a machine called washer machine.
RE The machine has three compartments. Bottles for
washing are places on the conveyer come inside the machine and get successive treatment.
Bottles are treated with 4% caustic soda in the first compartmental a temperature 100-150F. Next
these were conveyed to the second compartmental, where bottles are again treated with2%
caustic soda at temperature of 120F, in the third compartment bottles are treated with soft water.
Time duration in each compartment is 10 min. Bottles are then sent through the inspection
center, where are watched against strong light.

SYRUP ROOM

Here syrup is prepared from filtered water, sugar and the concentration. The room is well
equipped with several tanks and filter press. The first one is “Heating Tank” in which syrup is
actually prepared. Calculated amount of syrup along with concentrate and water are being heated
up to85 degree C. Thus a saturated solution is being prepared. Next it is sent through a machine
called Filter press syrup is filtered here.

Filtered syrup is next passed through a Para flow cooler, when by recycling glycol methods, the
temperature of syrup is cooled down to 20-25 degree C cooled syrup is then stored in the syrup
tank. Syrup comes to the Traumatic machine. Here syrup is mixed with carbonated water under
pressure in definite proportion. Inspected bottles gradually come under the “Filtration machine”
carbonated syrup by this time fills the filler machine. From this machine, syrup is poured into the
bottles in calculated amount. The exact rate of filling is 620 bottles per minute. Meanwhile
crowner machine helps in closing the mouth with helps of the caps completely air tight.

Ready bottles are again sent through an inspection center for through examination on conveyer.
Next they were carried on a round table they are collected.

Our Distribution Network & Our competition

Our products are brought to market through direct-store-delivery (DSD),broker-warehouse and
foodservice and vending distribution networks. The distribution system used depends on
customer needs, product characteristics and local trade practices.

Direct-Store-Delivery.
We, our bottlers and our distributors operate DSD systems that deliver snacks and beverages
directly to retail stores where the products are merchandised by our employees or our bottlers.
DSD enables us to merchandise with maximum visibility and appeal. DSD is especially well-
suited to products that are restocked often and respond to in-store promotion and merchandising.

Broker-Warehouse
Some of our products are delivered from our manufacturing plants and warehouses to customer
warehouses and retail stores.

These less costly systems generally work best for products that are less fragile and perishable,
have lower turnover, and are less likely to be impulse purchases.

Foodservice and Vending

Our foodservice and vending sales force distributes snacks, foods and beverages to third-party
foodservice and vending distributors and operators. Our foodservice and vending sales force also
distributes certain beverages through our bottlers. This distributionsystem supplies our products
to schools, businesses, stadiums, restaurants and similar locations.

Our businesses operate in highly competitive markets. We

compete against global, regional, local and private label manufacturers on the basis of price,
quality, product variety and distribution. In U.S. measured channels, we have a similar share of
CSD consumption and a larger share of liquid refreshment beverages consumption, as compared
to our chief beverage competitor, The Coca-Cola Company.

However, The Coca-Cola Company has a significant CSD share advantage in many markets
outside the U.S. Further, our snack brands hold significant leadership positions in the snack
industry worldwide. Our snack brands face local and regional competitors, as well as national
and global snack competitors, and compete on the basis of price, quality, product variety and
distribution.

Success in this competitive environment is dependent on effective promotion of existing

products and the introduction of new products. We believe that the strength of our brands,
innovation and marketing, coupled with the quality of our products and flexibility of our
distribution network, allow us to compete effectively.

DISTRIBUTION CHANNEL OF LUMBINI BEVERAGE PVT. LTD.

To make its product available at the right place, at right time in market, at right price, the sales
department of the company plays major attention towards controlling the channel of distribution.

The company right from its beginning stage maintain single type of marketing channel. The
nature of channel is as follows;

COMPANY

DISTRIBUTOR

RETAILERS

CONSUMERS

At first soft drinks is supplied to distributors directly. Retailers cannot take the delivery directly
from the company. They have to take it from their respective or nearest distributors. The
distributors selected on the basis of assurance given by them regarding minimum sales, which
they have mention annually, the selection is also done on the basis of financial position and
reputation of distributing in the market. As for the example, in appointing distributor first priority
is given to those who are in cigarette business.

Depending upon the market each distributor, in its initial stage deposit some security money.
This amount varies between five thousand and ten thousand. The distributor selects the retailers.
There is no relation between the company and its retailers. On the other hand there is no definite
and fixed criteria for the selection of the retailers from the side of distributors. One like “
Panwala, cigarette shop” or any other shopkeeper can have
the stall for the sale of soft drinks and they are called the retailers or dealers. They have to give
assurance to the concerning distributors for better sales and at the time of taking delivery they
have to deposit the security that is the change for the empty bottle with specified purchasing
price.
The distributors at first have to seek the permission of the sales department for the number of
cases of soft drinks required by them. After getting the proper authority from the sales
department they take the delivery from the shipping department paying the requisite either in
cash or as demand draft. Generally there is no compulsion on that part of distributors to provide
the transportation facilities to the retailers.

But the distributors of the big cities provide the transportation facilities to their respective
retailers. The distributors and the retailer are independent to sell as they want but are controlled
to some extent by the company also as they have to give some assurance regarding minimum
sales. It happens so because they are given some incentives also. They are fully independent to
gear up the market, as they want. The company does the gearing job itself also and some times it
advises them to gearing up in a way which is more profitable for all of them.

The distributor can be dropped if they fails to achieve the required target of sales. They can also
be dropped when they don’t follow the instruction given by the company or when they charge
high price or when they are engaged in black marketing, loading etc.

The supply of soft drinks, to the distributors depends upon the ups and downs in sales. But in the
initial stages the distributors have to sell up to a minimum target set by the company or as
decided by agreement between the company and the distributors. In the later stages soft drink is
supplies as and when demanded by the distributors.

Process of Distribution
Lumbini beverages Pvt. Ltd. distributes its products in the above mentioned ways.
But in Patna City, it has mainly focused on direct store delivery method and distributorship
method.
 In Patna, Lumbini Beverage Pvt. Ltd. have two warehouse and three distributors
from where it distribute its products to the retailers. One of its warehouses is located at Kumhrar
Park and the other one is at Patliputra.

As I have done my project from one of its warehouse so my report is mainly

concentrated on the distribution of Pepsi products from the warehouse to the retailers.

At first, the products are brought to the warehouse by the trucks and after inspection they are
stored there. These products are supplied to the retailers as per their demand raised through the
salesman. Each salesman of this warehouse has been given his own particular area in which he
has to visit each and every outlet selling soft drinks. These salesmen take orders from the
retailers and provide them the products as per their demand. Now these products are brought to
the market by the vehicles provided by the company to this warehouse. On each vehicle there is a
driver and a loader which helps in the distribution of the Pepsi products from the warehouse to
the retailers. These retailers are selected by the C.E. of the company. There is no relation
between the company and its retailers. On the other hand there are no definite and fixed criteria
for the selection of the retailers from the side of distributors. One like “Panwala, cigarette shop”
or any other shopkeeper can have the stall for the sale of soft drinks and they are called the
retailers or dealers. They have to give assurance to the concerning C.E. for better sales and at the
time of taking delivery they have to deposit the security that is the change for the empty bottle
with specified purchasing price. The retailer are independent to sell as they want but are
controlled to some extent by the company also as they have to give some assurance regarding
minimum sales. It happens so because they are given some incentives also. They are fully
independent to gear up the market, as they want. The company does the gearing job itself also
and some times it advises them to gearing up in a way which is more profitable for all of them.

SWOT ANALYSIS

STRENGTH;

• PepsiCo is the second largest food and beverage company in the world.
 • It owns 17 mega brands which are known around the world.
• It has well positioned itself in the mind of the customer.
• It has a well defined group of consumers.
• It has a well built market and currently holds almost all parts of the state.

WEAKNESS;

• The Visi-cooler has not been distributed as per the demand of retailers.
• Focus mainly on the big dealer.

OPPORTUNITY;

• It should give more incentive to the dealers in the rural areas.

• More schemes should be launched, especially during off-season. So as to attract more and
more customers.
• More and more fridge should be provided to the retailers.
• The consumption rate is higher in Bihar.

THREATES;

• Company is spending more on Advertisement, especially in Urban areas, to increase its

sales.
• Baba Ramdev’s preach cause a huge fall in sales volume.
• Company is facing a strong competition from the local products.
• Attitude of the salesman is not appreciable.
 PRODUCT PROFILE
PRODUCTS OF LUMBINI BEVERAGE
PRICE LIST OF PRODUCTS

PRODUCTS OF LUMBINI BEVERAGE PVT.LTD.

Name of product Quantity Color Flavor

Pepsi 200ml Burnt-sugar Cola
Pepsi 300ml Burnt-sugar Cola
 Pepsi 600ml Burnt-sugar Cola
Pepsi 2000ml Burnt-sugar Cola
Mirinda 200ml Sunset Orange
Mirinda 300ml Sunset Orange
Mirinda 600ml Sunset Orange
Mirinda 2000ml Sunset Orange
Slice 200ml yellow mango
Slice 250ml Yellow Mango
Slice 300ml Yellow Mango
Slice 500ml Yellow Mango
Slice 1200ml yellow mango
7-UP 200ml Colourless Lime
7-UP 300ml Colourless Lime
7-UP 600ml Colourless Lime
7-UP 2000ml Colourless Lime
Everest Soda 300ml Colourless
Everest Soda 500ml Colourless
Mountain Dew 300ml Colourless lemon
Mountain Dew 600ml Colourless Lemon
Mountain Dew 2000ml Colourless lemon

Price(in may,2009)

Premium Volume MRP Price/case

 Pepsi 200ml 8.00 168.00

Pepsi 300ml 10.00 214.00

Soda 300ml 5.00 108.00

Slice 500ml 22.00 498.00

Slice 1.2 ltr 48.00 532.00

Mountain dew 600ml 20.00 454.00

Soda 600ml 12.00 264.00

Aquafina 1 ltr. 15.00 144.00

Mountain dew 2 ltr. 55.00 459.00

Pepsi 600ml 20.00 454.00

Pepsi 2 ltr. 55.00 459.00

Cane 250ml 15.00 330.00

RESEARCH METHODOLOGY

INTRODUCTION
OBJECTIVE OF STUDY
COLLECTION OF DATA
METHODOLOGY OF STUDY
ENVIRONMENT SCANNING
TOTAL MARKET ENVIRONMENT
USES OF DEALER SURVEY
LIMITATIONS
 RESEARCH METHODOLOGY

The right combination of a detailed study, observation, cooperation and experiment is called

research. It is systematic generalization and formulation of the theory. The RESEARCH

METHODOLOGY involves the following

Research
Objective

Developing Research
Plan

Data
Collection

Research Processing
&Analyze

Finding
s

Recommendati
on
Conclusio
n

OBJECTIVE OF THE STUDY

The Title of the project is “STUDY OF DISTRIBUTION NETWORK” in PEPSI

company.

Objectives:
1. To know the distribution method adopted by the organization.

2. To know how much percent the retailers are satisfied with the distribution of Pepsi
products.

3. To know the brand which are more preferred by the customers.

4. To know the percentage share of Pepsi cooling equipment.

5. To know how many outlets are covered with glow sign board of Pepsi.

6. To know the market share of Pepsi products.

 DATA COLLECTION
The methodology used for collecting the data is considered to the primary for any report. The
research design of this report is exploratory i.e. formulate problem from more precise
investigation. The major emphasis is on the discovering of ideas and insights. The formulate
research design is characterized by great amount of flexibility. It’s contains is characterized by
great amount of provided opportunity for considering different aspect of a problem undertaken in
the study.

1. COLLECTING OF DATA

Data was collected on the basis of primary and secondary.

♦ Primary data;
The data which is being collected for the first is known as Primary data.

♦ Secondary data;
The data which is already assembled is the secondary data i.e. magazines, websites and
organization report.

1. METHODOLOGY OF THE STUDY

♦ Exploratory;
To find the per day stock and per day sale at different outlets, exploratory research method was
adopted. A survey form was prepared and the retailers were asked to answer them during the
course of their interview.

♦ Schedule method;
Dealers response were conducted with the help of prepares schedule, sample are taken at
different location of Patna.
 ♦ Documentary observation;
Books, annual report, websites, published and unpublished materials.

♦ Field observation;
During training period we did extensive survey of the distribution outlets and consumer to
observe the marketing operation perform by the organization.

ENVIRONMENT SCANNING

“The process by which organization monitors their relevant environment to identify

opportunities and threats affecting their business are known as environment scanning.”

The external environment in which PEPSI beverage exist, consist of a bewildering variety of
factors. These factors (may also termed as influences) are events, trends, issues and expectations
of different interested groups. These factors are explained below;-

♦ Events are important and specific occurrences taking place in different environment
sectors.
.
♦ Trends are the general tendencies or the courses of action along which events takes place.

♦ Issues are the current concerns that arise in response to events and trends.

♦ Expectations are the demands made by interested groups in the light of their concern for
issues.

By monitoring the environment through environment scanning, the PEPSI considers the impact
of the different events, trends, issues, and expectation on its strategic management process. Since
the environment facing organization is complex and its scanning is absolutely essential,
strategists have to deal cautiously with the process of environment scanning. Information for
environment scanning is collected systematically. Information related to markets and customers,
the changes in legislation and regulation which have a direct impact on an organization’s
activities, government policy statements pertaining to PEPSI business and industry, and so on,
could be collected continuously to monitor changes and take the relevant factors into account.
Lumbini Beverages conducts special survey and studies to deal with specific environment issues
from time to time. Such studies may be conducted, for instance, when Lumbini Beverage has to
undertake special projects, evaluate existing strategies, or devise new strategies. Changes and
unforeseen developments may also be investigated with regard to their impact on the
organization. Lumbini Beverages Pvt. Ltd. Information in a processed form, available from
different sources both inside and outside the organization.

TOTAL MARKET ENVIRONMENT

To know the total market environment I have done the market survey and dealer survey.

MARKET SURVEY

Market survey is one of the most widely used marketing research techniques. Its purpose is
collecting specific data concerning the market that cannot be from the companies internal record
or from external published source of data, market survey may be of various types like census
survey etc.

DEALER SURVEY

In order to understand the Distribution network as well as market share of Pepsi among its
competitors I conducted survey under the guidance of Mr.Kamal chadda(H.O.S. of Lumbini
beverage), Mr. Manish Sahay(M.D.M.) and Mr. Haris kumar singh (C.E. of Lumbini beverage
Pvt. Ltd.) .
While conducting the survey, a format was provided to me, which was to be filled up the dealers
so that it meets the requirements of the Organization. The dealer survey as mentioned earlier
includes a variety of dealers.

I have tried to visit each outlet of the area given to me in order to understand the distribution
network as well as the market share of Pepsi .
The area given to me was Patna city where as I had to report daily to one of the warehouse of
Lumbini beverage which is situated at Kumhrar Park.

Dealer survey as it increase the turnover of the company and also the investment of the money
are increased from various marketing inputs such as case stock, advertisement.
By the help of dealer survey we can get an idea, in which area investment is needed.
 INTRODUCTION;

Dealer survey method is primary method by which one get information with respect to
following factor:-

1. Knowledge of market in terms of;-

• Number of dealers
• Location of dealers
• Types of dealers
• Market output i.e. case stock, no. of glow sign board, no. of visi-cooler.

From this we know how good we are in the market place and in the areas where we are lacking .
It may be found that in some place only the competitor’s brand s are available , then by the help
of survey we can find out the reason behind non availability of Pepsi brands in specific area.
The knowledge of case stock will indicate our “ case in trade” and that of competitors. This will
indicate our case velocity which will help to plan our bottle as well as to know
weather our distribution is effective or not. If our case stock is low then we may decide a case
stocking campaign.
Feedback from the market place regarding services of dealers will help us to improve our
servicing in the weaker areas.
Therefore, appropriate marketing strategy can be worked out depending upon the findings.

1. Distribution Effectiveness;

From the dealer survey we can find out the number of dealer and the stock and other details, non
buyers will also be located. Activation of non buyer can be done immediately. With the above
knowledge one can increase the number of routes to get increase dealer coverage and hence more
effective distribution and higher sales. Also details of this will help to checkup on the route
selling of sales man so that we can control them by closely monitoring their performance.
 2. Training group for future executive;

Good investigation towards this survey can be recruited to take a future job. This people will
ideally suitable, as they would know the market thoroughly.
•They should visit the counter on the daily basis including the remote places.
• Salesman should visit the counter on weekly basis.

1. How to increase distribution effectiveness;

• After the above survey, the company can improve the distribution network.
• Immediate activeness of non buyers.
• Improve the dealers coverage.
• ccIncrease the realignment of routes.

Therefore , “dealers survey” are important keeping in mind that distribution forms the major
marketing activity in our industry and also that through these surveys one acquires knowledge of
the market.

It should be also added here that continuous dealer surveys are required because of the
following reasons.

a) As our turnover increases we require skills to tackle the problem and dealer survey
help in acquiring first hand as to use the skills effectively.

b) With our increased growth, investment of money are increased for various marketing
inputs e.g. case stock, advertisement etc. and by survey we can get an indication of the
areas in investment should be made to get the maximum benefits.
 USES OF DEALER SURVEY

1. Market knowledge;

Dealer survey gives the total profile of the market by knowing.

➢ Location of dealers
➢ The type of dealer
➢ No. of dealers who keep Coca-cola and Pepsi and comparing the stock
➢ Marketing inputs with respect to;-
a) Advertisement
b) Servicing
c) Visi-cooler

Dealer survey as the word indicates is the survey of every dealer of soft drink in the area. For
practical purpose the dealers not only include the authorized dealer appointed by the company
but it also includes the retailers- big or small grocery, shops, stationary, restaurant, betel shop
etc. Beside these the various exclusive stalls and sales of pantry cars are also included in it. In a
nutshell, by dealer we mean those who are dealing with the soft drink in some way or the other in
large or small quantity, directly or indirectly.

Thus the study includes all such dealers which include various aspects;-
 Route wise no. of dealers
 Crate strength
 Per day sale
 Chilling aid
 Advertising
 Nature of outlets
 Schemes and pay-offs.

While conducting the survey of dealers, a format was provided to me, which has to fill up by the
dealers so that it meets the requirements of the organization. The dealer survey as mentioned
earlier includes a variety of dealers.

In order to understand the distribution network as well as the market share of Pepsi in Patna, I
have tried to visit each and every outlets and where ever I went, I personally meet with retailers
and tried to know their problem while selling Pepsi products.
 1. Real consumer;-

According to per day selling report of the Pepsi products, we can easily search the real consumer
of the company. It is a FMCG product so general people to high-class people drink it. As
temperature in the environment is grow its selling is automatically increase. We can see that
Pepsi product is present everywhere because of its good distribution channel. In every betel shop
to a good restaurant we can easily get the chilled Pepsi product. Pepsi has launched its products
in different flavors to attract the consumers. Company knows what people want to drink.

2. Purchase method;-

As we can see that Pepsi product is present everywhere, so every people can buy it. Pepsi has
launch its product in different range for convenient to every class people. The 200ml and 300ml
is available for single person and 600ml and 1500ml is available for family pack. The company
sales the 200ml and 300ml cold drink in glass bottle whereas 600ml,1500ml, 2000ml in plastic
bottle. Here the consumer has to return the glass bottle where as there is no need to return the
plastic bottle.
 LIMITATION OF THE STUDY

1. I have done my survey only in few areas of Patna.

2. Time period was very short to understand clearly about the company’s distribution
network.

3. The behavior of the outlet owners was not appreciable.

4. Sometime they did not give the right information.

5. The report prepared by me is based on the collected information

6. The respondent may be biased.

7. Temperature- as the temp. was very high, we were forced to end our work as soon as
possible per day.

8. Lack of fund was also one of the major obstruction to limit my survey to a small sample
of respondent
 ANALYSIS AND INTERPRETATION

TYPES OF OUTLETS VISITED

RELATED MARKET SHARE
BRAND PREFERANCE
PERCENTAGE SHARE OF COOLING EQUIPMENT
COMPANY WHICH GIVES MORE SCHEME
PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION
PERCENTAGE SHARE OF GLOW SIGNAGE

Total number and types of outlets visited

Sr.no Types of outlets No. of outlets

1. General /kirana store 62

2. Sweet shop 46

3. Pan shop 44

4. hotels 26

5. Phone booth 58

6. Cold drink centers 33

7. Others 40

309
TOTAL

TYPES OF OUTLETS
Interpretation; The maximum number of outlet in Patna is of General/kirana store then
Phone booth & then others, so the distributors should distribute the product segment wise
accordingly.

RELATED MARKET SHARE OF PEPSI & COCA-COLA

No.of outlet covered % (approx)

PEPSI 115 40%

COCA-COLA 184 60%

TOTAL 309 100%

Interpretation;- From the above diagram it is clear that Coca-cola has captured more market
than Pepsi.
 BRAND PREFERANCE OF PEPSI PRODUCT

Interpretation;- the above diagram shows the brands preferred by the customer, so the
distributor should made available the product as per the demand of the retailers

PERCENTAGE SHARE OF VISI-COOLER

Product name Number %( approx)

PEPSI 89 29%
COCA-COLA 164 53%
OWN 56 18%
TOTAL 309 100%
 Interpretation: From the above diagram we can see that the % of visi coolers
distributed by Pepsi is low comparing to coca-cola.

PERCENTAGE SHARE OF ICE-BOX OF DIFFERENT SOFT DRINKS

PRODUCTS NO.OF BOXES %(APPROX)

Pepsi 21 24%

Coca-cola 53 61%

Own 13 15%

Total 87 100%

Interpretation: - on the following diagram we can absorb that 53% of ice boxes are distributed
by coca-cola which is comparatively 23% higher than Pepsi, so we can say that coca-cola is
focusing more on cooling equipment that makes the goodwill of company between the retailers.

COMPANY WHICH GIVES MORE SCHEMES

Interpretation; from the above diagram it is clear that Pepsi has invested more on scheme as
compared to coca-cola

PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION

No. of retailers satisfied %(APPROX)

PEPSI 139 45%
COCA-COLA 170 55%

TOTAL 309 100%

INTERPRETATION: From the above diagram it is clear that retailers are not satisfied with
distribution of Pepsi as compared to Coca-cola.
 PERCENTAGE SHARE OF GLOW SIGNAGE

PRODUCTS NO. OF SIGN BOARD %(APPROX)

Pepsi 96 37%

Coca-cola 164 63%

Total 260 100%

INTERPRETATION: From the above diagram it is clear that 37% of glow sign board is of
Pepsi while 63% is that of coca-cola.
FINDING, CONCLUSION, SUGGESTION

FINDINGS
The collected data which were analyzed came out with the following conclusion.

♦ The number of Coca-cola outlet is more than that of Pepsi.

♦ The retailers are not satisfied with the distribution of Pepsi products.

♦ The distribution network of Pepsi is not as much strong as compared to Coca-

cola.

♦ The Pepsi products are not reaching to each and every corner of Patna.

♦ Most of the dealers want glow signboard and chilling equipments, which they are asking
from long time.

♦ Pepsi has invested more on scheme for the retailers. Yet there is a need of large
investment in visi-coolers and glow signboard.

♦ All the products of Pepsi like mountain dew, slice, Tropicana is not provided when
retailers demand it.

♦ In cola segment Thumps-up is the main competitor of Pepsi, in lime segment Limca and
Sprite is the main competitor of M.Dew and 7-Up, where as in juice(mango) segment
Maaza is main competitor of Slice.

♦ The young generation of people likes most Pepsi, 7-Up and Mountain Dew while
women, children and older people like slice and Mirinda.

♦ The Performance of visi-cooler is not satisfactory.

CONCLUSION
We all know that Pepsi is the second largest soft drink company in the world. It enters into the
Indian market after the exit of the Coca-cola from India. So it had a better chances to become the
no. 1 atleast in India. But due to several reasons it fails to achieve that position. These reasons
include the distribution network of the company.

Distribution network is a way through which the goods flow from the producer to the
consumer. It plays a major role in success of a company because any good which has been
produced should be distributed to the retailers so that they could be sold to the real consumers.
As a franchisee of PepsiCo in Bihar, Lumbini beverage has focused on Direct store
delivery method for the distribution of its product in Patna. This is a method in which goods are
distributed to the retailers from the different warehouses of company in the guidance of the
company executives. The Lumbini beverages Pvt. Ltd. has two warehouses in Patna from where
the goods are distributed .one is located at Kumhrar park and the other one is located at
Patliputra.

This direct store delivery method is good in many ways like in this method the company
executives have a direct interaction with the retailers by which they will come to know their
problem while selling the product. But yet the company needs many correction in this area.
Like the company vehicle is not reaching to each and every area of the city. Only 40% outlets are
covered by the distributors. The areas like P.C. colony, Doctors colony, Nala road does also have
the potential market but in these areas the company vehicle have not reached since last one &
half year. In peak season like summer, the distributor could not make available all the products to
the retailers. The signage of the company has not been distributed as per the demand of the
retailers. And if we come to the distribution of Visi-cooler, it also has not been distributed as per
the demand. It is just the half of what Coca-cola has distributed to its retailers. Moreover
,whatever visi-cooler has been distributed, its performance is not satisfactory.

So, if the company will focus on the above mentioned problem, it will be helpful for the
company to capture more market share.
 SUGGESTIONS

♦ More improvement is required in the distribution network in the outskirt and in remote
areas, because in the peak season like summer the small dealer are taking goods twice or
thrice and in between if the distributors could not supply them, the competitor will get the
opportunity to supply the goods.

♦ Company executives should visit the counter on daily basis.

♦ Executive should take the feedback from the retailers about the service of the salesman
and the distributors.

♦ Salesman should have good interaction with the retailers which results company in
increase in sales.

♦ The criteria to provide Glow sign and Visi-cooler should be changed and a separate
department should handle this.

♦ Regular visit of technical person is required to solve the problems of visi-coolers on the
market at the right time.

♦ The entire Pepsi products should be displayed at one place so that the customer can aware
about the different brands of Pepsi.

♦ Due to its low fizz and sweetness, pepsi is not liked by every one . so Pepsi should come
out with more fizz.

♦ Mountain Dew should be made available in 200 ml also.

♦ Pepsi should make available all its products at railway stations, bus stand or at highway
because at these place people have not so much time to wait for.
BIBILIOGRAPHY
1. Philip Kotler, Marketing management(12th edition)

2. Ramaswamy and Namakumari, McMillan India,7th edition

3. www.Pepsi.com

4. www.Pepsizone.com

5. www.google.com
ANNEXURE
 PEPSI
A STUDY OF DISTRIBUTION NETWORK OF LUMBINI BEVERAGE PVT. LTD.

QUESTIONNAIRE FOR RETAILERS

Name of the shop/outlet ;………………………………………….

Address/Location ;…………………………………………………..

Type of outlet ;……………………………………………………….

General store Pan shop

Sweet shop juice shop

Dhaba/Canteen Others

1. Which brand of soft drinks you deal in ?

a) Pepsi
b) Coca-cola
c) Both
d) None
(if answer is D, outlet is terminated)

1. Which brand of cola provides you better facility ?

a) Pepsi
b) Coca-cola
c) Both

1. How many crates of Pepsi & Coca-Cola you sell per day?
a) 0-1 crates
b) 1-2 crates
c) 2-3 crates
d) 3 & above

1. Which company’s signage you have in your outlet?

 a) Pepsi
b) Coca-cola
c) Both
d) None

1. Which company’s visi-cooler you have in your outlet?

a) Pepsi
b) Coca-cola
c) Both
d) Own

1. Does the distributors vehicle visits in this area regularly ?

a) Yes
b) No

1. After how many days you take delivery of soft drinks?

a) Daily
b) After 1 day
c) After 2 days
d) 3 & above
e) Weekly

1. Are you satisfied with the distribution of Pepsi?

a) Yes
b) No

1. Which company gives you more schemes?

a) Pepsi
b) Coca-cola

1. Any suggestion for the betterment of Pepsi?

……………………………………………………………………